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EUR/USD Attempts Fresh Recovery, PMI’s Next

Key Highlights

  • EUR/USD is showing a few positive signs above 1.1320.
  • It broke a key contracting triangle with resistance near 1.1340 on the 4-hours chart.
  • GBP/USD accelerated further higher above the 1.3500 zone.
  • The Euro Zone Manufacturing PMI could remain at 58.0 in Dec 2021.


EUR/USD Technical Analysis

The Euro formed a base above the 1.1300 level against the US Dollar. EUR/USD started a decent recovery wave above the 1.1320 and 1.1340 resistance levels.

Looking at the 4-hours chart, the pair settled above the 1.1340 level, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

Besides, there was a break above a key contracting triangle with resistance near 1.1340 on the same chart. It even surpassed 1.1350 and might soon test the 1.1400 resistance. A close above 1.1400 could open the doors for more gains.

The next major resistance is near the 1.1450 level. On the downside, an immediate support is near the 1.1340 level. The main support is now forming near the 1.1300 level.

A downside break below the 1.1300 support could spark a move below 1.1280. Any more losses might send the pair towards the 1.1220 level.

Looking at GBP/USD, the pair started a major increase above the 1.3480 and 1.3500 resistance levels. The next key resistance is near 1.3580.

Economic Releases

  • Germany’s Manufacturing PMI for Dec 2021 - Forecast 57.9, versus 57.9 previous.
  • Euro Zone Manufacturing PMI for Dec 2021 – Forecast 58.0, versus 58.0 previous.
  • US Manufacturing PMI for Dec 2021 – Forecast 57.2, versus 57.8 previous.